By Kim Yoo-chul
Staff Reporter
Time is up. Will Sony finally return or will South Korean electronics duos ― Samsung Electronics and LG Electronics ― defend their positions from the Japanese attack with innovative and appealing products?
But this time around, the battleground is not the North American market. It's Europe ― the IFA trade fair.
IFA is Europe's biggest consumer electronics fair. The show has been recognized as an event linking businesses with retailers and buyers. Sales at the 2007 show totaled 2.75 billion euros, an increase of some 15 percent from the previous year.
In 2008, the fair will be held in Berlin, Germany, from August 29 to September 3.
From large flat-screen televisions and small mobile phones, to mobile media gadgets and home appliances, this year's IFA will showcase convenient, intelligent technologies and the efficient use of energy and other natural resources.
Industry experts say the attention is being focused, however, on Sony's possible striking products and detailed TV and Blu-ray strategies ― a move to regain its momentum and its traditionally strong business segments in one of the world's biggest consumer electronics markets.
``The size of Sony's booth will reach some 6,000 square meters out of 30,000 square meters in total, while that of Samsung Electronics and LG Electronics will be 3,900 square meters and 3,000 square meters, respectively,'' Christian Goke, chief operating officer of Messe Berlin, an organizer of the trade fair told The Korea Times at an IFA press conference held on the Spanish island of Majorca.
With the biggest booth size ever, the Japanese company plans to steal the limelight by introducing the latest liquid crystal display (LCD) and active-matrix organic light-emitting diode (AM OLED) television sets.
Also, Sony is to exhibit a prototype 55-inch LCD TV by equipping LED backlight in a pre-emptive measure.
Industry sources open the possibility that Sony might unveil group-scale new business strategies as it aims to converge its strengths and electronics goods so that customers can download films and other content through televisions, game consoles and other products.
``As far as I know, Sony chairman Howard Stringer will visit Sony's booth during the exhibition and he will say something about its consumer electronics blue-print to revive business momentum in the European market,'' a high-ranking Sony official told the paper.
In flat-screen televisions, Sony will exhibit the industry's slimmest AM OLED models as the company plans to sell ultra-thin TVs based on AM OLED technology as early as 2009 in Europe.
OLED TVs, which are thinner and more energy efficient, offer brighter colors than LCD and plasma sets, and are expected to be a promising next-generation flat TV.
Sony started selling the world's first OLED TVs in Japan late last year, and in the United States early this year. The 11-inch model, which is just three-millimeters thick, now sells for roughly $1,850 in Japan.
``Sony's flat-screen TV business has recently stagnated in both the North American and European markets hit by an aggressive attack from its biggest South Korean rival Samsung Electronics. Now, we will not step back further,'' according to the Sony official.
According to estimates by GfK, a market research firm, the size of the flat-screen TV market in Europe is expected to reach 24.6 billion euros this year from 10.9 billion euros in 2007, while 30- and 40-inch TV's will account for 62 percent of the total.
Industry experts say the ``LCD TV War'' will heat up in the European market and escape from the traditionally-proven North American market as manufacturers are betting that increasing appearance of the sets in households will lay the ground there, along with China.
``The Sony chairman is likely to talk about its supply chain management schemes because the management system is key for a bigger presence in Europe, considering a decentralized structure,'' another Sony official said, adding that its local rival Sharp was struggling in the region because its insufficient marketing manpower makes it difficult to deal with major retail chains.
In the past year to March, about 75 percent of Sony's sales came from Europe, the U.S. and its home-turf.
After the next-generation storage format war ended with the victory of Sony-led Blu-ray alliances over a rival format pushed by Toshiba and its partners, the Japanese company is also set to specify its plans for the faster expansion of Blu-ray titles, according to Sony officials.
With introducing premium quality of PAVV line-ups, South Korea's Samsung Electronics is planning to extend it strong moves in the European flat-screen TV market, as well as in North America.
Samsung, which has continued in its top position in the North American flat-screen segment, recently unveiled the industry's slimmest 44.4 millimeters thick or 1.9-inch in depth at its widest point of ``PAVV Bordeaux 850'' TV set.
Samsung's latest set is 0.3 millimeters thinner than the 44.7 millimeters ``Scarlet Super Slim'', which LG electronics introduced in May.
Samsung said the PAVV 850 TV features a design that infuses color in the black bezel by applying the next-generation of dual-injection molding technology.
Since color is infused and not painted on, no volatile organic compounds are emitted during the production process, reducing CO2 emissions.
For brand image, the South Korean company has also prepared to spur marketing in its Armani TV ― a move to appeal to European consumers with high-purchasing consumer power.
The company's digital media division chief Park Jong-woo will also deliver a key note speech with the title of ``Seamless Experience'' for the first time with Samsung's vice president Lee Yoon-woo attending the show.
``Large-sized flat-screen TVs with high-definition or full HD configuration are conquering the living rooms of Europe with greater speed. More than 90 HD-TV programs are already on the air, mostly in the form of Pay-TV,'' a Samsung spokesperson said.
``At the recently finished UEFA 2008 soccer tournament, even public broadcasters have started to offer HD-TV programs as free-TV, meaning content of HD-TG is one of the core premium-services by IPTV operators,'' Michael Kurpiers, senior manager of Samsung Electronics' Corporate Marketing in Germany said.
Environmental-friendly monitors using LED backlights, digital frames, ultra-slim pocket projectors, latest Blu-ray players and other appliances such as camcorders, home theaters and MP3 players are other devices which could draw attention from on-lookers.
As mobile devices for entertainment, navigation and communication have been gathering momentum as the driving growth factors in the consumer electronics industry, appliances from the related segment are likely to draw keen attention from visitors.
``Thanks to the recent decision by the European Commission to introduce DVB-H as the standard for Europe, watching television using mobile phones will be another highlight at the show,'' the Samsung official said.
He added mobile players for music, pictures and movies will be the biggest and most attractive devices at this year's show due to increasing appetite for these gadgets among young visitors.
Since the variety of multimedia use has been constantly growing ― videos from camcorders, music from MP3 players, games from the Nintendo paddle or even the Blu-ray player ― the demand for intelligent network solutions is matching the flow.
Amid intensifying show-off competition between Samsung and Sony, Samsung's local rival LG Electronics hopes for a bigger penetration in Europe's consumer electronics market with washers, linear freezers and this year's strategic ``Scarlet'' LCD TVs.
Rather than introducing striking products, LG plans to tap the marketability of its existing consumer electronics line-ups because LG is still in a transition period in Europe.
``Kang Shin-ik, vice president of LG's digital display division unit will present some detailed strategies in LG's European business,'' a LG spokesperson said.
At this year's show, health and lifestyle will be another focus in home appliances, as actual systems for keeping fresh food or even steam cookers represent the trend toward comfortable lifestyles and healthy nutrition, as well as new appliances that are equipped with electronic devices for various new uses.
Officials say products equipped with ecological technology will be new concepts for consumer devices in Europe as ecological considerations have been the industry's main task in the long haul. For example, TV sets, which consume energy in stand-by as well as running mode have been reduced in recent years.
Industry watchers have also shown keen attention to Dutch-based Philips' next move in TV business in its traditionally strong Europe.
Philips' North American CEO Paul Zeven recently emphasized the company will focus on more stable markets after the Dutch player dropped its LCD TV business from North America, hit by deteriorating profits because of price competition between Samsung, Sony and even commodity brands like Vizio and Westinghouse.
Watchers forecast Philips might present detailed strategies over bio-, lightening- and environment-friendly businesses during the show as it doesn't want to lose market power there.
The IFA fair had long been considered a ``big marketing event'' because global consumer electronics makers widely regard the ``Consumer Electronics Show'' in Las Vegas as the real springboard for the unveiling of the latest products.
But watchers say this year's IFA show will draw more attention than expected mainly because of Sony's rare decision to install a bigger booth.
``Concerns were running that the IFA show was faced with an `identity crisis,' however, this year will be fun by seeing a battle between Asian rivals,'' the LG official added.